How to Find the Best Product Design and Development Partner
Choosing the best product design and development partner for your company is critical for product success, but the process involves more than just finding a team with the right skill set. The ideal product development partner should both complement and enhance your team. To find the right partner, it’s necessary to consider both technology expertise and commercialization experience, as both are critical to the success of your project and product. In this blog, we explore many factors that you may want to consider when selecting the right partner for your next project.
Would you go on a week-long vacation with your new partner?
Begin by clearly defining the qualities you desire in a partner. Hopefully those qualities align with your company’s values. If you haven’t defined your values yet, think about what makes a successful partnership. Keep this in mind when you start having conversations with potential partners. This preparation will serve as a valuable guide during the evaluation process. It’s important to keep an open mind regarding the needed skills and requirements, allowing room for complementary expertise that a potential partner may offer. These other skills often go unappreciated, yet they can add significant value to the product development process. Most importantly, you should enjoy spending time with this person for this collaborative relationship to prosper.
Define Project Requirements
Start by asking yourself, “What is the deliverable I want to create in order to meet current needs?” Once you know the deliverable, then you can dive into the project scope. Don’t skimp on documenting details about the deliverable – it’s essential to clearly articulate the deliverable’s requirements by creating a detailed project brief that outlines the product’s intended purpose, target audience, key features, and desired user experience. Focusing on the user experience is particularly important, especially in the context of the growing emphasis on patient-centered healthcare. Therefore, it’s ideal to include technical specs such as battery life, connectivity, sensing requirements, integration with existing systems, and any other specific technologies that may be in play. Additionally, consider the product’s future scalability by envisioning how it might evolve and what features could be added down the line. This forward-thinking approach is where innovation plays a crucial role.
As you develop your product requirements document (PRD), it’s reasonable to distinguish between features that are a must-have and those that are nice to have. Keep in mind that it is often necessary to have discussions with a design and development partner to discover and understand what you really need. A lack of a project scope definition should not hinder you from reaching out; just be honest with your potential partner. A reliable partner will recognize that product development and design is an iterative process and will value the fact that you sought their guidance.
What are your company’s biggest challenges?
Think about what you need to do to de-risk your business: Is there a new competitor? Are there evolving ways to deliver the product or service? Is the reimbursement or purchasing process unclear or changing? Are you struggling with an engineering problem and need specific expertise? Whatever challenges your company faces, they need to be clearly identified. Use this information to compile a list of support that you need today.
Who is buying your product? How much should your product cost? What customer problem are you solving? Do you know the regulatory requirements? As you think about potential partners, make sure that they are comfortable walking in your shoes, they understand the risks you’re taking, and they can see all of the risks you face. For example, you may have a design in mind, but the cost of that design doesn’t align with the reimbursement available to the product. It is helpful if your partner understands your technical, clinical, regulatory, and commercial risks at hand.
Don’t be afraid to talk about money.
Conversations about budgets are necessary and should occur upfront. You have to start with a budget in mind, even if it’s a general estimate. Early conversations with a new partner can help you understand how much investment is needed and determine if you need to allocate from your current budget, a capital raise, or through grant funding. Providing financial guidance helps to refine the scope of work. Unless you have unlimited money and don’t care how you spend it, you’ll want to make sure that the proposal you receive is in line with your budgetary constraints. Otherwise, you are wasting your and your potential partner’s time. It’s not unusual for a client to want more than they can afford. Perhaps you have $250,000, and the services you’re seeking cost $500,000. If this is the case, your partner will let you know. When a client has a limited budget but can clearly articulate their needs, their partner is likely to offer alternative options or a more cost-effective approach. In such cases, a company can gain valuable insights into the product development process. With open and honest communication, the company may find a way to move forward without exceeding their budget.
Break down a project into phases with key milestones. These milestones are central components of a detailed timeline. Each phase of the project, such as requirements definition, prototype development, and alpha testing should have an associated milestone. The budget should clearly articulate what is included and consider iterations based on user feedback, which is generally underestimated.
It’s also critical to clearly outline what is not included. Budget details are informed by defining what you and your team are willing to do and what you expect your partner to do. These details can provide the foundation for negotiations and lead to more effective collaboration practices. Unrealistic timelines are a clear sign that a company lacks expertise and can lead to budget overruns.
Don’t forget the Commercialization Strategy
When it comes to commercialization strategy, the insights we have gained from Simbex founder Rick Greenwald have been invaluable. When working with early-stage companies, Rick would often prod them to describe how their product would succeed in the market given the assumption that their technology worked perfectly. He would try to investigate whether the client understood what it took to have a successful product. In Rick’s definition, product success involved three components: customers were buying it, it worked well, and it was delivering financial results. This perspective offers a stark reminder of the obligation a partner has to clients: even building the most technically elegant solution is only one part of the product development equation.
To provide the other parts of the equation, ask questions like these to ensure that we are building the right technology:
- Who is your target user/customer?
- What is the regulatory pathway?
- Who pays for your product and what price makes sense? (Is it reimbursed? How much is reimbursed?)
- What are requirements in terms of the cost of goods sold?
- What clinical data is needed?
Dig into Product Market Fit
Even if you are only looking for a partner to write a piece of software or manufacture a specific part, it is important for you to understand your product and market inside and out. The process of customer discovery will help you fill in the gaps or at least better understand the questions for which you still don’t have answers. Take some time to explore your target customers and markets while assessing market demand and evaluating the competition. Ultimately, you want to thoroughly understand how your product meets the unique needs of the market.
Regulatory, Reimbursement and IP – Do you have a plan?
As you define your target markets, be sure to identify the relevant regulatory requirements. This process should take into account the FDA approval process, MDR expectations in the EU, and any other certifications relevant to your target regions and regulatory obligations. In addition, target markets will inform reimbursement and intellectual property (IP) strategies. Identify the appropriate reimbursement codes applicable to your product and make sure you understand the requirements for obtaining these codes. Develop a plan to protect your IP through patents, trademarks, or copyrights. Your partner can provide essential assistance by identifying both opportunities and pitfalls for your IP. Your company should have an NDA in place prior to speaking with potential partners.
Scrutinize potential partners
Once you’ve completed all the legwork in terms of your product’s market position and unique selling propositions, it’s time to evaluate potential partners. One of the foremost criteria to consider is industry experience. It’s essential to look for partners who have worked on projects that are similar to yours in terms of industry, complexity, and scope. For example, if you’re developing a healthcare app, a partner with experience in healthcare regulations, user privacy, and data security would be an excellent option. Take into account if the partner has experience with your specific target market, as this background can offer a crucial understanding of user nuances.
A relevant track record is necessary when looking for a partner. Look beyond any visuals or graphics presented on a website, as these can over-sell capabilities. To learn more about a partner’s portfolio, ask for case studies that highlight similar problems that your company is experiencing. These case studies should detail the solutions and results you are also looking to achieve. Review these case studies with a keen eye and take note of how they illustrate the partner’s ability to overcome obstacles based on previous projects.
You can also ask for referenceable accounts to contact as well as current or past clients to elicit honest feedback based on first-hand experience working with the partner. Contacting long-term clients can be particularly valuable, as they are likely to be satisfied with their partner relationship and have experience with ongoing support.
If the case studies and client testimonials align with your expectations, the next step is to evaluate the partner’s capabilities. Three areas should be of particular concern: design expertise, development skills, and innovation approaches.
For example, think about a partner’s design approach to UI/UX. Ideally, the partner should offer user-centered design services that incorporate data and research to inform design decisions. Assess development skills as they pertain to the technology stack you intend to use. For example, gauge a partner’s experience with React Native for mobile apps, Angular for web apps, and embedded systems for IoT deployments. The more detail you can gather about their technical prowess, the better. Ask about coding standards: how do they ensure code quality? Do they rely on code reviews or automated testing? In terms of project management, find out if the partner has experience with Agile, Waterfall or other relevant development methodologies that impact project success.
The three C’s: Communication, Collaboration, and Culture
Interacting with a potential partner gives you an opportunity to assess communication and collaboration skills, which are critical success factors for a productive relationship. You should find out how frequently the partner communicates and their method for doing so. Weekly video calls or daily updates via Slack are examples that could be assessed based on your own needs. Collaboration is also critical for ongoing project management and can be facilitated through the use of numerous tools. Find out if the partner uses project management tools like Jira, Trello, or Asana, as well as version control tools such as GitHub or Bitbucket. Along the way, check to see that a partner has a process for handling feedback and incorporating any updates into a project. Remember that effective collaboration takes two parties: both you and your partner should be equipped with all necessary tools.
While cultural fit may be hard to measure, it is another necessary component of a solid working relationship. Aspects to consider to determine a good fit with a partner include their work ethic, their manner of solving problems, and their handling of feedback. Mutual respect should be non-negotiable, as it indicates a willingness for a partner and client to work together towards a common goal. Working well together also requires flexibility and adaptability. It’s likely that project requirements may change during the course of an engagement, so ask a partner to outline any experience they have with iterative development and how they have dealt with unexpected challenges. You can prompt an enlightening conversation by providing hypothetical scenarios or past challenges your company has faced to evaluate how the partner would approach them.
There should be few surprises in a relationship, especially when it comes to IP. Thorough discussions of IP rights should take place prior to establishing a formal engagement. In these discussions, sort out ownership by clarifying who will own the IP of the final product including source code, design assets, and documentation. Product design and development teams often engage clients in a work-for-hire arrangement in which the contract stipulates that clients own any IP created together. However, there may be other licensing style agreements that work well for your specific application.
There is a significant amount of due diligence involved when selecting a product development partner for any given project. For this reason, consider the potential for establishing a long-term partnership. When doing so, examine support and maintenance practices by discussing the partner’s approach to post-launch support. Support activities to evaluate include processes for fixing bugs, handling updates, and adding new features. Service-level agreements (SLAs) can define the level of support services you expect, so be sure to ask a potential partner if they offer them.
When weighing the possibility of a long-term relationship, capacity and growth potential are critical elements. Evaluate the partner’s ability to scale both their team and resources to meet increased demands as your product evolves. Financial stability is important in that it might affect their ability to provide long-term support, so analyze financials accordingly.
Once you have evaluated a potential partner to your satisfaction, it’s time to decide whether a formal engagement is warranted. This is where a request for a proposal (RFP) often comes into play, yet this step may not be required depending on your circumstances. If all signs point to working with a partner, then it’s time to get to work.
Start Small
We advise starting any product development initiative with a small project or trial. At Simbex, we call this initial engagement a Phase 0 project, which affords an opportunity to gain initial experience in all aspects of product design and development. See our ActiveStep Case Study for a more detailed definition of Phase 0.
The goal of a Phase 0 project is to get immediate, discrete value as well as getting to know the partner without committing to a long-term relationship. Think of it as dating before getting married. During a Phase 0 project, you can assess the partner’s adherence to timelines and quality of work while gauging how well the partner integrates with your team.
Performance Check-Ins
During this “dating” period, performance check-ins can determine how the project is going as well as the viability of a long-term partnership. These check-ins are critical yet require a level of comfort with open and honest conversations. It’s important to ask detailed questions on a regular basis. Devise questions that will facilitate discussions around the status of deliverables, including the budget and timeline. Identify opportunities to improve the project and collaboration between teams. The product development process is iterative and dynamic. Any relationship with a partner should follow suit.
Scrutinize the Proposal
A request for proposals (RFPs) is a great tool that can serve a valuable purpose, but it’s not always necessary. For example, if a company can articulate what they need and the scope of their project is well-defined, there is no need for a formal RFP. This holds particularly true when a company already has a potential partner or two in mind. However, in the event that a company is engaged in a competitive bidding process, an RFP is essential.
When an RFP is needed, a company should evaluate several components. Assess the partner’s understanding of your project as well as their proposed approach to working with you. Gaining a clear understanding of a partner’s experience is valuable, but remember that they may have limited exposure to your specific needs. While there may have been some document exchanges or a few discussions, a partner may not possess the same depth of knowledge and experience with your product as you do. Look at the proposal process as a way to refine the conversation and ensure you are on the same page, technically and financially.
If the proposal you receive doesn’t hit all the points you had in mind, ask for clarification or refinement. Consider the proposal evaluation process as a dry run for a working relationship. It affords a way to refine the conversation and ensure you and a partner are on the same page. Enhance the interaction by preparing a list of specific questions, such as how a partner handles tight deadlines, unexpected changes, or team collaboration. By involving key stakeholders, a company can get a well-rounded view of a partner.
Conclusion
Selecting the right product design and development partner is crucial for your company’s success and requires a deliberate set of considerations. The ideal partner should complement and elevate your team, providing expertise that enhances both the technological development and the commercialization strategy. By following the guidance outlined in this article, you can ensure a partnership that will drive your product’s success in the market.
